Do rich friends make you feel poor?

There's always going to be that desire to keep up with the Joneses, but if your friends earn more than you do chances are you'll feel a little inadequate.

We've all heard the saying that money is not the key to happiness, but it can be difficult to keep close relationships with friends if you can't keep up with them financially.

According to a study conducted by Chicago University researchers, people who feel eclipsed by their friends' material successes are more likely to develop health issues including heart disease, ulcers, diabetes and high blood pressure.

If this is you, it's time to take back some control & put an end to rich friends making you feel poor. Take on board these helpful saving tips without being labelled the cheapskate of your group. Your health & your bank balance will be better for it.

1. Stop comparing
In Australia, middle class society is disappearing as the gap between rich and poor widens. Unemployment in today's economy is a growing concern – having a secure job is something to be proud of.

Focus on what you have, not what you don't have. If you're not making comparisons you will spend less, be happier and be well on your way to saving more money. But what to do with the cash once you've managed to save it? Don't let your money lay idle, instead safeguard it in a high interest savings account and earn interest as you save.

Related: Money saving tips for every day of the week

2. Use your credit card with caution
The easiest way to get yourself into debt is by misusing your credit card. With money at the tips of your fingers, it's easy to forget that we will of course have to pay our spendings back - with interest. The best way to start growing your wealth is to sort out your debts first - if you ignore your debt it will loom over you, doing nothing to improve the gap between you and your rich pals. Do your research and shop around for a credit card that offers low interest, rewards and other extras that will benefit your situation.

3. Stop saying no
Saving money doesn't mean you have to give up socialising with your friends – it's about finding alternatives. If a friend takes you out to dinner, next time you can opt to have them over for a home-cooked meal. It's not important to spend the same amount if you're both having fun. Opt to meet friends for breakfast instead of dinner, this way the meal will be cheaper and you won't be spending money on alcohol which can make up half the cost of a dinner bill. Alternatively you could socialise whilst doing exercise. Meeting a friend for a coastal run, bush walk or a swim is a much cheaper alternative to having a meal together. This way you don't miss out on socialising and aren't breaking the bank.

Related: 5 Steps for a winning dinner party on a budget

4. Be honest
Trying to impress others can leave a serious hole in your wallet. It's bad for your bank account if you're making unnecessary purchases that are out of your price range. To overcome this, be honest with your friends. If you genuinely can't make an outing, don't use phrases like "I can't afford it". Instead, tell them you're saving for a special purchase – even if it's to pay rent. You will feel better and more empowered by explaining yourself.

Related: Embarrassing money issues and how to fix them

5. Be creative
If you are always longing for new clothes, why not organise a closet swap with friends? It's the ultimate way to get over missing new clothes. Remember you can also pick up some great label clothes that have hardly been used and cost a fraction of the price at second hand markets and charity shops.

If you're the type who craves sipping fancy cocktails at swanky bars, you still can – just host a drinks night at your home. You'll have fun playing bartender amongst friends, and it's cheaper too!

Related: Confessions of a shopaholic

5. Get richer
It's healthy to have goals and a desire to expand your wealth. Money can improve your quality of life, so it's acceptable to want more. Start planning your budget to meet your savings targets and ask for a pay rise or look for a higher paying job. You might want to invest in some education or training so that you can get a higher paying job which you'll enjoy more too. Remember, there's a difference between wanting to earn more money for your hard work and lusting after the sports car your friend drives.

How do you keep up appearances but still save money? We'd love to hear your tips, comments or feedback on our Facebook page.

To compare prices and save money across all your monthly bills, start at Moneyhound.com.au